The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1887-12-15
TnE SURPLUS pRonLeM.

colt and Attorney General Garland Give
Accounts OF Their stewardships.
WASHINGTON, Dec. s--The Secretary Of the
Treasury in his annual report submitted 10 Con-
gress says that the total ordinary receipts of
the Government for the year ended June 30,
1851, we're 1911, i03 27s, and that the total ordi
nary expenditures were ssl5,S35, 42s, leav-
Ing surplus OF s55.567, $40 which, with an
amount drawn from the cash balance in tho
Treasury OF 81, s55. 40, makes total surplus
OF 5000 $40, which was offered to the redemp-
ton OF bonds. The receipts for the year show
an increase of Ssl,96s,55O over the
year before, and the expenditures
show an increase of SIS 4i9,oli. For
the present year the revenues are
estimated al $3.50, 0o0,Oo0, and the expenditures
t3l6,Sl7, 49, leaving an estimated surplus of
t66,iS .si4 June 80. 1888. The Secretary esti-
mates the surplus for the year 1889 at $50, $780,
200. In regard to the surplus revenue, the Sec
Rotary says:
Taxation and currency reform were the
questions which my distinguished predecessor
deemed TO be OF the most pressing importance,
and to them he devoted large part OF the
two annual reports which he made TO the Con-
gress. tind the same subjects TO be still the
most important OF all those to which
it is my duty TO call your attention. and
II is not necessary TO do otherwise than follow
the general lines laid down by him in treating
them. Circumstances have heightened the
immediate urgency of taxation reform as affect
ing the surplus revenues of the Government
The urgency is so great that the question OF
surplus revenues demands the earnest attention
OF both the legislative and executive branches
OF the Government
The Secretary then gives the following ways
in which the receipts and expenditures OF the
Government may be made about equal:
II. The purchase OF the interest bearing debt
OF the Government
"l. Large expenditures by Government for
other purposes than the purchase OF bonds, so
that they shall each year equal the taxation OF
that year,
49, Reduction of the revenue from taxation
TO the amount actuallyrequired TO meet neces-
sary expenses
'All OF these expedients have in common
the one merit Of preventing the arrangement
10 business which must follow boarding or lock.
ing up in the Treasury the circulating medium
OF the people,
In regard TO the first plan the Secretary
agrees with what the President in his message
SAID on the same subject. He then says:
81 can not believe that it will adopt the sec
ond exped emit viz: the enlargement of Gov
eminent expenses simply TO expend money
raised by taxation when the public veal does
not otherwise call for the expenditure.
Reduction OF the revenue from tax
ut on is the only flt remedy for the
may be accomplished in various ways. One
is to reduce or abolish internal revenue
taxation. In favor OF this Is the fact that IN a
small part of the Southern States the internal
tax on liquors and tobacco is thought to be OPP
prcssive and IS odious to the people OF those re-
gons; and the further fact that by its reduc-
ton the expenses OF its collection might be
somewhat reduced
The third expedient is discussed at great
length, the decrease of revenue from customs
by increasing duties to an almost prohibltive
extent being disposed OF summarily, The Sec
rotary says that the objection to internal taxa
ton on the ground that it began during
the war, and, therefore is war measure
is not in reality objection He
dsposes OF the abolition OF the internal
tax by saying: ITO do away with
the whole revenue from internal taxes at pres,
ent would so diminish the revenues that 1t
would be necessary either TO lay duties on arti
cies OF Importation now free. such as tea and
coffee or TO suspend the sinking fund require
ment, and also materially diminish other ex-
penses of government"
The Secretary recommends again the ANAL
gnmation OF the collection OF Gus toms dues and
internal taxes and the passage by Congress OF
the bill introduced two years ago aud known as
the administration bill" revising the rules
and regulations imposing and collecting i'm
port taxes.
amounted TO s55, 25s 7Ol, and the Secretary esti-
mates that It Will aggregate sl4OO1OOOO on
June 30 next, On this point the Secretary
says: 'One use which can be made a this
money is to diminish taxation TO such an ex-
tent that the annual revenue will be less,
for some years TO come, than the appro-
priations; thus the accumulated surplus
would be used for ordinary expenses, and the
people would gain the greatest possible good
for 1t. Doubtless, by the time this money was
spent In the pursuance OF this plan, the reye-
nues would have so increased as TO be equal to
the proper annual expenses. Experience
teaches that this would probably be the case.
In the meantime portion OF this
money could lie in banks, where it
would be available for the business OF the
country, and, rs upon withdrawal from them
IL would at once be returned to the channels OF
business through Government payments, no
shock would be caused by such withdrawal
The recommendations for revenue reform are
SIMPLY a rehash of the Presidents message, or
rather were exhausted in that document
After deducting the gold and silver coin held
for the gold and silver certificates in circula-
ton, II is found that the Government owned
s3D, n276 9S less gold coin and 1868, 100 less
standard silver dollars on Nov. ]. 1857, than it
did on July /. 1886; during the intervening
period 4S,sS6.81 standard silver dollars were
coined. AS there is still SO much coined gold
owned by the Government 49,, 6j7, go Nov /
1884, IL has been thought best TO allow the
gold to accumulate in the form OF bullion until
there is need OF gold coin.
The statements of the Treasurer show that
after dsducting he demand and trust liabili-
ties of tho Government and the amount OF
money on deposit in National bank deposito-
ries, the net money in ths Treasury vaults was
$9!,49j,70i56 on June 30, 1856; October 81 1887,
twas I 40, 49,, 3G1.77.
One OF The most interesting facts shown by
the foregoing statement is the increase in the
number OF standard silver dollars owned by the
Government and the increased use OF the same
money by the people in the form OF silver GER
titisates. The So 81 and II certificates furnish
convenient currency and it is evident that
the future use of the silver dollar Will be al
most exclusivelyin that form.
1t is waste 10 coin and store any more silver
dollars at present. There is no function which
those that are coined after this time will proba-
bly, ever perform, except to lie in Govern
ment vaults aud be basis upon which |
silver certificates can be issued. 1t is
seldom that any one wishes to have his Sill
yer certificate exchanged for the silver dol
lar Itself; consequently limited number OF
coined dollars will perform the work OF redeem
ing certificates. The S214,000,O00 which are now
IN the treasury will more thaa suffice to re- |
deem, as they may be presented from time to
time, the silver certificates that have already
been issued or that can be issued against all
the dollars which will be coined for years to
come under the present law
'The law should be SO amended the report
says, ''as TO authorize the Secretary OF the
Treasury to issue certificates against the co n
ing value OF the bullion bought and to coin
only such number OF dollars as he might deem
expedient hereafter. This would not restrict
in the least degree the use OF the silver dollar
as currency. The certificates would be equally
secure whether representing coined dollars
lying IN vaults, or representing bullion also
lying in vaults, and which could be coined into
dollars.
.-The accumulation Of silver in the Treasury
beyond sufficient reserve needed TO meet
any demand which may be made for It can
be prevented by fixing the amount of such
reserve and providing that when it is ex-
cseded by say s5,oO),Ooo the purchase
OF bullion shall cease until the
amount held by the Government again EQUALS